Optimization and planning of renewable energy sources based microgrid for a residential complex.

World population growth and increased energy demand are taking a heavy toll on the environment. Aside from developed countries, the adverse effects are far more apparent in third‐world countries, which are also affected by climate change, pollution, and fuel scarcity. One of the primary solutions to this challenge is the implementation of cleaner and more sustainable energy resources. Building scale renewable integration is one of the solutions included in hybrid energy systems. The article aims to design a grid‐tied hybrid energy system for a residential complex in Dhaka, Bangladesh. The design includes several combinations of the photovoltaic system, diesel generator, and battery energy storage system (BESS). The key objectives of the analysis are to minimize system costs, reduce grid dependency, and reduce emissions. Various models were simulated in Hybrid optimization of multiple energy resources (HOMER Pro) to obtain a suitable system with maximum renewable usage. Several systems were compared based on different parameters such as net present cost (NPC), operating cost, cost of energy (COE), and carbon emissions. A grid‐tied system with PV and lithium battery storage was found to be the most suitable system for powering the residential load. From the analysis, the preferred system can reduce COE by 53%, NPC by 26%, and operating costs by 54%. Also, the total emission is reduced by 31%. Aside from being cost‐effective, the proposed system is also convenient and sustainable, with fewer salvageable parts owing to its use of lithium‐based BESS. [ABSTRACT FROM AUTHOR]